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Colorado legislature approves adjustment to online sportsbooks deposit rules

Legal Writer

Publish Date: May 11, 2026

Fact checked by: Matt Moreno

Key Points

The bill would limit bettors to six deposits within a 24-hour period.
The measure is pending Gov. Jared Polis’ inaction, signature, or veto.
Legislation also changes advertising rules for licensed sportsbooks in Colorado.

Colorado’s legislature could soon institute significant changes to the experiences for people using licensed sportsbooks within the state’s borders. One bill affecting several changes has cleared both chambers of the state legislature.

The proposal focuses on advertising rules and deposit limits. However, the measure could have imposed far more drastic changes.

SB26-131 institutes new standards for Colorado sportsbooks

The Colorado Senate approved SB26-131 after it was slimmed down, and it’s the narrower version of the bill that got similar approval from the Colorado House on Saturday. The legislation as approved for transmission to Governor Jared Polis has four main ramifications.

Banning the use of advertising materials perceived as targeting people under the age of 21
Limiting bettors to six deposits in a 24-hour period
Outlawing sportsbooks sending device notifications or text messages to bettors to solicit a wager
Removing credit cards from the list of acceptable deposit methods

The amount of time that Polis has to act on the bill depends on when he officially receives it. The Colorado Constitution sets a limit of 10 days during sessions for gubernatorial actions when the legislature is in session but extends that to 30 days when the legislature has already concluded its session. At this time, the schedule calls for the 2026 session to conclude on May 13.

At this time, advertising regulations for sports wagering in Colorado already address ads targeting minors. SB26-131 would change the state code to make such marketing a potential criminal offense, though.

While sportsbooks will have to adjust their procedures if Polis signs the bill or allows it to pass into law, the changes could have been far more significant. Language that didn’t make it into the final bill included a reduction in the types of wagers that Colorado sportsbooks could have taken.

Earlier versions would have barred prop bets and ads during events

Provisions that did not make it into the version of SB26-131 that will be sent to Polis include a ban on proposition wagers and restrictions on when sportsbook advertisements could be shown. The proposed rules would have banned sportsbook ads between the hours of 8 a.m. and 10 p.m. as well as during the broadcasts of live sporting events.

However, a fiscal note attached to the bill estimated an annual drop of over $2 million for the state in tax revenue from sports wagering if the prop bet ban had taken effect. That contributed to the tenet being struck before the Senate approved the bill.

In Colorado, tax revenue from sports wagering supports the state’s water management system. This bill would mandate that each year’s dispersal to that fund equate to the previous year’s contribution at a minimum.

Disallowing prop wagers might have made that a tall order for the state’s regulated sports betting industry, given the popularity of such bets. The language of the bill specifically tied the definition of “prop bets” to individual athlete performances, which constitute the majority of such wagers.

Colorado bettors do not face any changes that substantial to their sports wagering experience if SB26-131 becomes law. However, some bettors in the state may notice the credit card ban and deposit limit as well as new advertising rules.

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